While JWW Consulting’s founder John Wiseman is confident the bulk of accountants will conduct themselves appropriately given the new AFSL requisites, he fears holes will emerge in some firms’ advice practices, resulting in the need to rely on professional indemnity (PI) insurance.
For example, Mr Wiseman believes the cost of professionally administering SMSFs will rise, given the expense of new compliance obligations for accounting professionals – and accountants may consequently be faced with “irate” clients.
“Many accountant clients that undertook SMSFs in the past, as low-cost savings, investment and retirement vehicles, [may] find themselves with no option but to restructure their SMSF or revert to an industry, retail or corporate fund – at potentially significant cost,” Mr Wiseman said.
“If the costs and impact associated are substantial, many clients will question the previous advice or lack of communication and poor pre-July 1 service – and seek redress through legal action, hence the need to contact PI providers sooner rather than later.”
The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day